Do student houses pay Council Tax, or are they exempt? The answer depends on several factors, including your student status and who you live with.
While University Halls of Residence automatically qualify for Council Tax exemption, the rules for other types of student accommodation differ.
We are here to clarify, this often misunderstood topic. If you're moving into student housing or planning to soon, this guide will help you understand what Council Tax is, who needs to pay, and how to claim an exemption if you're eligible.
Let’s get started!
Simply put, Council Tax is a tax that the local authorities set to meet their budget requirements in the local area. This money is used to fund local services for citizens, including schools, rubbish collections, street repairs, libraries, parks, leisure facilities and more.
In England and Wales, the Valuation Office Agency (VOA), part of HMRC, assesses properties for council tax. Properties are placed into bands (A-H) based on their type and location, with A being the lowest and H the highest.
The council tax band is calculated using the price that the property may sell for on the open market at the time of the rate valuation.
Source: Based on Liverpool City Council
Houses where only full-time students reside are exempt from paying Council Tax. If you do happen to receive a Council Tax bill then you can apply for an exemption through your local council.
However, if you live in a mixed house of students and non-students, then the rules will be slightly different. If you’re in a mixed house in Liverpool, you could be eligible for a 25% discount.
You will need to pay Council Tax if you are over the age of 18 and reside in a property that is required to pay Council Tax. When it comes to paying the tax, there should be a dedicated person, known as the ‘liable person’. They are responsible for paying the Council Tax.
If you live in a house as a couple, you will both be 'jointly and severally liable'. In this instance, you are both accountable for paying this tax both as a pair and individually.
There are some instances where you may not need to pay Council Tax. Read on to find out if you are exempt from paying Council Tax in the UK.
Not everyone is in similar positions, and for this reason, there are some exemptions on who needs to pay Council Tax. These include the following:
In most cases, tenants aged 18 or over in England, Scotland, and Wales are responsible for paying Council Tax, as outlined in their tenancy agreement.
However, landlords become liable if the property is unoccupied, classified as a House in Multiple Occupation (HMO), or solely occupied by full-time students (who are exempt from Council Tax).
If only one adult resides in the property, they may be eligible for a 25% single occupier Council Tax discount, while multiple tenants share joint responsibility of payment. .
Having an understanding of who is responsible and when is essential for avoiding unexpected costs and managing your budget effectively.
A full-time student is defined as someone enrolled in a course lasting at least one academic year and who attends classes or lectures for at least 21 hours per week. Courses that qualify include undergraduate degrees, postgraduate degrees, and vocational programs.
Short-term courses or part-time study typically do not meet the criteria for Council Tax exemption, which is why it’s important to check your enrolment documentation to avoid misunderstandings.
Responsibility for paying Council Tax is determined by the type of property and its occupancy. If a property is entirely occupied by full-time students, no Council Tax payment is required.
In mixed households, where some tenants are not students, non-student occupants are liable for the tax.
For properties classified as Houses in Multiple Occupation (HMOs), landlords are generally responsible for Council Tax payments, as tenants typically rent individual rooms and share communal areas. Landlords are also responsible for paying Council Tax when properties are empty or unoccupied.
Landlords are generally not responsible for unpaid Council Tax as long as the tenancy agreement clearly states that tenants are liable. To protect themselves, landlords should:
If the property is empty or no one over 18 resides there, the landlord becomes liable for Council Tax until it is re-let. When there is a change in property occupation, landlords should notify the local Council Tax department to keep them updated.
To avoid any misunderstandings and financial disputes, it’s important to have a complete understanding of the rules regarding Council Tax as a student in the UK.
As a full-time student, you're exempt from paying Council Tax for the duration of your course. However, once your studies end, you’ll be responsible for covering this expense.
If you’re heading to university in Liverpool or Ormisk this upcoming year, and are thinking of moving out, then Stockton Students have exceptional student accommodation tailored to your needs.
Choose from our range of modern ensuite student apartments and enjoy the ease of inclusive bills. Find your future student home today or reach out to our friendly team if you have any questions.
If you are a full-time student, your visa status does not affect your Council Tax exemption. The exemption is based on your enrolment as a full-time student. When you reach the official end date of your course, you will then be required to pay Council Tax in the UK.
No, university students who meet the criteria for full-time study are completely exempt from Council Tax in the UK.
Landlords are not required to pay Council Tax for properties fully occupied by full-time students. However, they are responsible if the property is empty or if it qualifies as an HMO.
